Major Bitcoin holders report heavy losses as BTC value falls

The largest Bitcoin holders are suffering significant losses

Twenty One Capital, a company controlled by Tether and the second-largest public holder of Bitcoin after Michael Saylor’s Strategy, reported a net loss of $413.5 million for the second quarter. Almost all of this was due to the revaluation of the Bitcoin on its balance sheet.

At the end of the quarter, Twenty One held 43,514 BTC worth approximately $2.8 billion, as well as $106 million in cash, according to RBC.

Twenty One Capital was founded in the spring of 2025 by a consortium consisting of Tether, SoftBank, Bitfinex, and Cantor Fitzgerald. The project was initiated by Cantor Equity Partners, led by Brandon Lutnik, the son of U.S. Secretary of Commerce Howard Lutnik.

At launch, the company received more than 42,000 bitcoins worth approximately $3 billion and immediately became the second-largest public holder of bitcoin after Strategy. Jack Mallers, founder of the payment service Strike, took the helm of the company.

In July 2026, Tether abandoned a deal to merge Twenty One with Strike and the mining company Elektron Energy. Mullers stepped down as CEO, and Rafael Zaguri took over as the new CEO. The published quarterly report was his first in his new role and simultaneously signaled a change in strategy: Twenty One intends to develop not only its Bitcoin reserves but also its own operating business and cryptocurrency-backed lending.

Twenty One’s shares (ticker XXI on the NYSE) have plummeted by more than 90% over the past year from their 2025 highs. In its report, the company acknowledged that its shares are “trading at a significant discount” to the value of the Bitcoin it holds.

Strategy, the world’s largest holder of Bitcoin, also reported a quarterly loss of $8.2 billion. Similarly, MARA Holdings, the largest U.S. miner, posted a loss of $611 million. The revaluation of Bitcoin on the balance sheet also led to significant losses for crypto companies linked to U.S. President Donald Trump’s family, particularly his media company, Trump Media.

Many of the dozens of companies following Strategy’s lead purchased cryptocurrency in 2025 at an average price significantly higher than the current market rate. Bitcoin traded at an all-time high above $100,000 from spring through October of last year, when most of these companies entered the market. As of August 2026, BTC is trading at $63,000–$65,000.